UPDATE: Project details updated during the EPSA 2025-26 edition. Awarded Special Recognition for continuous improvement and long-term sustainability.
Context
Madrid, Digital Capital is the Digital Transformation Strategy of the Madrid City Council (2023–2027), designed to ensure that the city continues to improve in the digital realm. It is designed for all individuals and businesses within the city, its neighbourhoods, districts and the City Council itself. The strategy encompasses technological initiatives that facilitate the green and digital transition, mitigating greenhouse gas emissions, enhancing the city’s habitat, well-being and quality of life. Among the main digitalisation projects that contribute to the sustainable development of Madrid are the Madrid Multicloud Strategy, the Easydro project for advanced workplace management, organisational culture change towards digitalisation and digital skills, and the Shock Plan for Boosting Electronic Administration.
Objectives
Each of the three sustainability-focused initiatives has specific goals. Madrid Multicloud aims to offer high availability of municipal services, optimise processes and response times, establish adequate storage and processing of information, and implement an efficient, effective, and quality technological management model. For Easydro, the goal is to prepare municipal teams for continuous learning covering all training needs, enhancing digital skills, adapting to administrative changes, adopting new work tools and staying updated on technology opportunities. The Shock Plan for Boosting Electronic Administration aims to (i) increase the use of digital administration, (ii) facilitate citizen and business administrative procedures, (iii) reduce paper notifications, (iv) shorten procedure processing times, (v) implement emerging technologies for improved public services, and (vi) enhance municipal employee training in electronic processing. In line with all of the above, the Madrid, Digital Capital Strategy strengthens these measures with specific commitments for the next four years: a 90 per cent reduction in paper usage, a 50 per cent reduction in processing times through robotic process automation and artificial intelligence, and achieving over 50 per cent electronic notifications.
Implementation
The Madrid, Digital Capital Strategy allocates at least €1 billion over its five-year execution period, taking advantage of the Next Generation EU European Funds to explore additional sources of financing. This aligns with European Funds’ goals of promoting technological development and innovation in public administrations, fostering economic growth and improving citizens’ quality of life. By receiving funding through the European Funds, the Madrid City Council has the opportunity to pursue more ambitious projects. These projects could include extensive training programmes aimed at both its employees and the general public. By doing so, the project aims to strengthen the digital skills of its workforce and potentially improve the delivery of public services.
Developments
Since its submission to EPSA 2023–2024, the project has evolved from a digital sustainability initiative into a full institutional reform, city-wide operating model for digital, green, and social transformation under Madrid Capital Digital.
Organisationally, the Digital Office has been consolidated with clear responsibilities for governance, prioritisation, data management, and responsible AI. This enables coordinated implementation across departments, agencies, and districts, ensuring scalability and accountability.
Lessons learned from initial fragmentation and uneven adoption led to a redesign focus on interoperable platforms, shared components, and end-to-end automation. Investments shifted to portfolio-based governance, aligning financial allocation with key performance indicators (KPIs) and policy priorities.
Performance management and public accountability replaced activity reporting. The Digital Administration Observatory and public dashboards monitor and evaluate adoption, efficiency, quality, and inclusion. Data is shared with the National Observatory of Electronic Administration, reinforcing accountability, transparency, and evidence-based governance.
Digital adoption reached structural levels: electronic channels increased from 14.34% (2019) to 83.41% (2025); paper use is near zero; over 14 million electronic notifications are issued annually. The Madrid Móvil app has nearly one million downloads and over eight million sports facility reservations, reducing waiting times and increasing satisfaction. In 2024, satisfaction reached 98% (in-person), 95.3% (telephone), and 81.7% (online).
Madrid has Europe’s longest continuous urban motorway tunnel (10 km, 381 million vehicles/year, second-busiest road in Europe by total traffic volume), integrating AI-based traffic management (artificial vision, intelligent incident-control systems, etc.). Mercamadrid, Europe’s largest fresh-food wholesale market by volume (3.7 million tonnes/year), operates a smart urban space with a 5G-connected autonomous vehicle and AI-managed energy smart grid with digital twin, and a dedicated energy data space.
Technologically, the scope expanded from digitalisation to data-driven and AI-enabled public services. The MAIA (Madrid Artificial Intelligence) governance framework regulates AI responsible deployment, addressing legal, ethical, and algorithmic risks. IoT infrastructure and 5G corridors were scaled as enabling infrastructure, providing real-time data to support greener, more efficient urban services.
Madrid has consolidated a fully operational data-driven model, as shown in the following examples. The IGUALA system integrates more than 60 datasets to generate a territorial vulnerability index guiding social policy decisions. AI applications already in production include the Asbestos Map AI with 95% accuracy, the Smart Tax Laboratory, the Big Data Mobility Platform and automated administrative actions regulated under national law. The Artificial Intelligence and Robotisation Programme includes five flagship projects and four dedicated training plans for municipal staff, ensuring responsible and scalable deployment under the MAIA governance framework.
Social and environmental dimensions were reinforced. Digital services now explicitly support sustainability objectives (paperless administration, efficient resource use) and digital inclusion, combining digital-by-default services with assisted channels, community-based support, and on-site digital inclusion agents.
These developments are consolidated in Madrid Capital Digital, which updates priorities, strengthens governance, and extends the strategic horizon, marking a clear qualitative leap from the initial EPSA submission.
Long-term impact
Long-term impact is evidenced by measurable, structural, and sustained results aligned with the initial objectives of digital sustainability, service quality, and inclusion. The strategy encompasses 74 projects, including 10 transversal corporate initiatives, backed by sustained municipal funding.
Productivity and environmental impacts have improved through automation, interoperability, and paperless processes, contributing simultaneously to efficiency and green objectives. Real-time data from IoT infrastructure in smart urban spaces and analytics supports better planning and resource use in mobility, urban services, and energy.
Responsible AI is delivering tangible outcomes under MAIA, with production use cases improving accessibility, processing times and transparency (e.g. automated classification of citizen requests, information extraction, subtitling of plenary sessions), all under human oversight.
Social impact is strongly evidenced. Digital inclusion programmes have supported around 1800 older people, with 92 trained volunteers in digital accompaniment operating in 15 centres; the companion app connects 1703 volunteers with 5764 older users, complemented by 15 digital inclusion agents providing in-person assistance.
The digital transformation has also strengthened advanced telecare services. More than 150 000 citizens benefit from teleassistance, including 98 000 traditional alert devices, 24 200 fall-detection bracelets, over 3000 GPS smart watches, and more than 18 000 safety sensors installed in homes (12 600 smoke detectors and 5000 gas detectors). This large-scale digitalisation of social services demonstrates the integration of digital, green, and social objectives.
Digital participation and open government mechanisms are reinforced through structured digital consultations. In 2024, 3505 citizens participated in the Strategic Plan on Immigration consultation, while 507 elderly citizens contributed to the development of operating regulations for municipal senior centres. Youth engagement initiatives reached 612 young participants in 2024 and 356 in 2025 through targeted sessions, ensuring that digital transformation is co-designed and socially grounded.
Results are evaluated through KPIs, before and after comparisons, and stakeholder feedback, enabling continuous improvement and substantiating the achievement of objectives.
Adjustment in the objectives
During institutionalisation, project objectives were refined and expanded. The fast emergence of generative AI led to a stronger focus on responsible AI governance, while data-driven management became a central objective rather than a supporting element.
Spillover effects are significant. Shared digital platforms, data governance, and IoT infrastructure now support policies beyond digital administration, including mobility, social services, emergency response, and sustainability. The project has strengthened cooperation with universities, businesses, and civil society, and contributed to EU-level experimentation through GovTech, Horizon, and the Connecting Europe Facility initiatives.
San Blas Digital exemplifies the territorial and social scalability of the strategy. This initiative combines digital skills, AI/STEM promotion and community engagement, with 66% of activities focused on digital literacy and employability. The centre delivers over 500 activities annually, reaching more than 9000 participants each year, and has been a top performing in the international NASA Challenge.
Replication potential is high. The project offers transferable components: interoperable platforms, KPI-based governance, responsible AI frameworks (MAIA), and inclusion mechanisms combining community volunteering with assisted digital access.
Continuing political and senior administrative support is secured through formal strategies, stable funding, and Madrid Capital Digital, ensuring long-term continuity and positioning Madrid as a reference for integrated green, digital, and social transformation at city level.